Income Tax - Taxation of Insurance Policies doc INSURANCE POLICIES

Size: px
Start display at page:

Download "Income Tax - Taxation of Insurance Policies - 2012-2013.doc INSURANCE POLICIES 2012-2013"

Transcription

1 INCOME TAX INSURANCE POLICIES BACKGROUND Effective from January 2011, a number of significant changes to the Income Tax Act were made which resulted in some unintended consequences. These changes were intended to raise a fringe benefit when the employer paid the premiums on behalf of an employee to an unapproved group scheme for Group Life Assurance, Lump-Sum Disability, Income Protection and Funeral Cover. However, the legal wording was not explicit enough, and some tax advisors and employers interpreted the new requirements to mean that the premiums paid by an employer to a group scheme did not result in a fringe benefit to the employee. This caused the Law to change again to accommodate these intended tax consequences. 2 APPLICABLE SECTIONS FROM THE INCOME TAX ACT 2.1 PARAGRAPH 2(K) OF THE SEVENTH SCHEDULE TO THE INCOME TAX ACT 2. For the purposes of this Schedule and of paragraph (i) of the definition of gross income in section 1 of this Act, a taxable benefit shall be deemed to have been granted by an employer to his employee in respect of the employee s employment with the employer, if as a benefit or advantage of or by virtue of such employment or as a reward for services rendered or to be rendered by the employee to the employer (k) the employer has during any period made any payment to any insurer under an insurance policy directly or indirectly for the benefit of the employee or his or her spouse, child, dependant or nominee. 2.2 PARAGRAPH 12C OF THE SEVENTH SCHEDULE TO THE INCOME TAX ACT 12C. (1) The cash equivalent of the value of a taxable benefit deemed to have been granted as contemplated in paragraph 2 (k) is the amount of any expenditure incurred by an employer during a year of assessment in respect of any premiums payable under a policy of insurance directly or indirectly for the benefit of an employee or his or her spouse, child, dependant or nominee. (2) Where any premium is paid in terms of a policy of insurance contemplated in section 23 (m) (iii), the amount of any premium paid by the employer of that employee must, to the extent that the amount has been deemed to be a taxable benefit in terms of paragraph 2 (k), be deemed to have been paid by that employee. (3) Where an appropriate portion of any expenditure contemplated in subparagraph (1) cannot be attributed to the employee for whose benefit the premium is paid, the amount of that expenditure in Page 1 of 5

2 relation to that employee is deemed, for the purposes of subparagraph (1), to be an amount equal to the total expenditure incurred by the employer during that year of assessment for the benefit of all employees divided by the number of employees in respect of whom the expenditure is incurred. 2.3 SECTION 11(W) OF THE INCOME TAX ACT 11. General deductions allowed in determination of taxable income. For the purpose of determining the taxable income derived by any person from carrying on any trade, there shall be allowed as deductions from the income of such person so derived (w) expenditure incurred by a taxpayer in respect of any premiums payable under a policy of insurance (other than a policy of insurance solely against an accident as defined in section 1 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993)) of which the taxpayer is the policyholder, where (i)(aa) the policy relates to the death, disablement or severe illness of an employee or director of the taxpayer; and (bb) (ii)(aa) (bb) (cc) the amount of expenditure incurred by the taxpayer in respect of the premiums payable under the policy is deemed to be a taxable benefit granted to an employee or director of the taxpayer in terms of paragraph 2 (k) of the Seventh Schedule; or the taxpayer is insured against any loss by reason of the death, disablement or severe illness of an employee or director of the taxpayer; the policy is a risk policy with no cash value or surrender value; the policy is not the property of any person other than the taxpayer at the time of the payment of the premium: Provided that any premium paid shall not be disallowed as a deduction by reason of the policy being held by a creditor of the taxpayer as security for a debt of the taxpayer; and (dd) in respect of any policy entered into (A) on or after 1 March 2012, the policy agreement states that this paragraph applies in respect of premiums payable under that policy; or (B) before 1 March 2012, it is stated in an addendum to the policy agreement by no later than 31 August 2012 that this paragraph applies in respect of premiums payable under that policy; 3 TAXATION OF LONG TERM INSURANCE POLICIES EFFECTIVE FROM 1 MARCH EMPLOYEE TAXABLE COMPANY CONTRIBUTION Paragraph 2(k) was added to the Seventh Schedule of the Income Tax Act and is applicable from 1 March It basically states that if the employer contributes to a policy that either directly or indirectly will benefit the employee, his dependants or any nominated person of that employee, then the employer contribution should be taxed in the hands of the employee on the payroll as a fringe benefit. Page 2 of 5

3 If the policy is in the name of the employer, the company contribution should be taxed against code If the policy is in the name of the employee then the company contribution should be taxed against code 3808 (release from debt) TAX DEDUCTIBLE DEDUCTION If the policy is an income protection policy, the new requirements go one step further. An income replacement policy is a policy that covers the employee against loss of income as a result of illness, injury, disability or unemployment. The company contribution to an income replacement policy which is taxed as a fringe benefit according to paragraph 2(k) of the 7 th Schedule is deemed to be a premium paid by the employee and a deduction in terms of section 11(a) and paragraph 2(4)(cA) of the 4 th Schedule is allowed, meaning the total contribution is a tax deductible deduction. This leaves the employee in a tax neutral position as far as premiums are concerned. This is on condition that the income protection benefit (if and when paid out) must be included in the employee s income (in terms of section 23(m)(iii)), and will be taxed in the event of the insured risk arising in the future. Note that this deduction is not allowed for other policy types - only for income protection policies as defined. 3.2 EMPLOYER Section 11(w)(i) states that for employer-owned group scheme policies, the employer will be allowed to claim the premium that is taxed as a finge benefit according to Paragraph 2(k) of the 7 th Schedule as a deduction. Note that this is a deduction of the Income of the company and not a payroll deduction. 4 CONCLUSION 4.1 THE COMPANY CONTRIBUTION The Act is very clear that the contribution by the employer to insurance policies should be taxed as discussed above. This is only applicable to products supplied by an insurer and therefore not apply to 1. Retirement Funds (pension fund, provident fund and retirement annuity fund). 2. Fees and benefits paid in terms of the Compensation for Occupational Injuries and Diseases Act 3. Fees and contributions paid in terms of the Unemployment Insurance Act. 4. Severance benefits paid by the employer. The special taxation requirements are unchanged for all of the above types of policies. Group Life, Disability Lump Sum, and Funeral Cover policies can be included as part of the retirement fund, and if these rules are approved by SARS (approved fund), are taxed and administered according to the tax requirements for the type of fund. Unapproved funds are funds that are not approved. It would include funds that provide a product outside the ambit of an approved pension or provident fund. These typically include Group Life, Disability Lump Sum, Funeral Cover and Income Protection (including Permanent Health Insurance) schemes. Page 3 of 5

4 4.2 THE DEDUCTION If it is an Income Replacement Policy the tax deductible portion will be the employee contribution plus the fringe benefit value and should be reported against code SUMMARY Insurance Policy CC Taxable:3801 or 3808 Income Replacement Policy CC Taxable:3801 or 3808 Tax Deductible = Employee Contribution + Deemed Employee Contribution (Fringe Benefit) Approved Funds Taxed according to the type of fund. The unapproved portions which form part of the approved fund should be taxed as a fringe benefit on code 3801 or Example: You have an approved provident fund. A component of the provident fund is an unapproved group life scheme the group life portion should be taxed as this is unapproved. Unapproved Funds Company contribution should be taxed as a fringe benefit. Page 4 of 5

5 6 REFERENCES Taxation Law Amendment Act No. 24 of January 2012 Income Tax Act No. 58 of 1962 Page 5 of 5

BUSINESS INSURANCE: UNDERSTANDING THE TAX IMPLICATIONS

BUSINESS INSURANCE: UNDERSTANDING THE TAX IMPLICATIONS BUSINESS INSURANCE: UNDERSTANDING THE TAX IMPLICATIONS Understanding the tax implications of business assurance is an important element of the advice giving process. With this marketing document we aim

More information

Taxation of Employment-Related Insurance Policies

Taxation of Employment-Related Insurance Policies Legislative Changes 2012-2013 P a g e 2 Introduction The purpose of this document is to provide you with specific insight related to the new legislative changes following the budget speech on the 22 rd

More information

CHAPTER 4 - TAX PREFERENCES FOR SUPERANNUATION AND LIFE INSURANCE SAVINGS

CHAPTER 4 - TAX PREFERENCES FOR SUPERANNUATION AND LIFE INSURANCE SAVINGS 45 CHAPTER 4 - TAX PREFERENCES FOR SUPERANNUATION AND LIFE INSURANCE SAVINGS 4.1 Introduction In general, superannuation and life insurance have not been subject to the normal income tax treatment for

More information

US CODE: Title 26,223. Health savings accounts

US CODE: Title 26,223. Health savings accounts Page 1 of 7 223. Health savings accounts How Current is This? (a) Deduction allowed In the case of an individual who is an eligible individual for any month during the taxable year, there shall be allowed

More information

Tax treatment of Retirement Fund benefits

Tax treatment of Retirement Fund benefits Tax treatment of Retirement Fund benefits Pension Lawyers Association Seminar June 2011 Janine Player email: jplayer@oldmutual.com Agenda Joining a fund types of funds Leaving a fund Withdrawal Divorce

More information

Life Insurance as an Employee Benefit

Life Insurance as an Employee Benefit Life Insurance as an Employee Benefit What is it? Life insurance is a contract whereby the insurance company pays a sum specified within the contract to a named beneficiary upon the death of the insured,

More information

INCOME TAX INSURANCE TERM LIFE INSURANCE POLICY TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE

INCOME TAX INSURANCE TERM LIFE INSURANCE POLICY TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE QUESTION WE VE BEEN ASKED QB 15/06 INCOME TAX INSURANCE TERM LIFE INSURANCE POLICY TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE All legislative references are to the Income Tax Act 2007 unless

More information

Retirement fund contributions

Retirement fund contributions No. 3 of 2016 January 2016 Retirement fund contributions This Legal Update must be read together with Legal Update 3 of 2014, issued on 17 January 2014, with the substitution of the date 1 March 2015 with

More information

IN RESPECT OF FRINGE BENEFITS

IN RESPECT OF FRINGE BENEFITS GUIDE FOR EMPLOYERS IN RESPECT OF (2016 TAX YEAR) 1 PURPOSE 3 2 SCOPE 3 3 OBLIGATIONS OF THE EMPLOYER 3 4 TAXABLE BENEFITS 4 4.1 ACQUISITION OF AN ASSET AT LESS THAN THE ACTUAL VALUE 4 4.2 RIGHT OF USE

More information

Chapter 32a Medical Care Savings Account Act

Chapter 32a Medical Care Savings Account Act Chapter 32a Medical Care Savings Account Act 31A-32a-101 Title and scope. (1) This chapter is known as the "Medical Care Savings Account Act." (a) This chapter applies only to a medical care savings account

More information

NATIONAL BUDGET 2012/13

NATIONAL BUDGET 2012/13 NATIONAL BUDGET 2012/13 On 22 February 2012 the Finance Minister, Pravin Gordhan delivered his National Budget Speech and announced the tax proposals for the forthcoming year as well as proposals which

More information

Tax planning for retirement By Jenny Gordon, head: Retail Legal

Tax planning for retirement By Jenny Gordon, head: Retail Legal Tax planning for retirement By Jenny Gordon, head: Retail Legal Agenda Tax deductions on contributions from 1 March 2015 Non-retirement funding income Tax during build up Tax on transfers Tax on lump sum

More information

Retirement Reforms Summary Effective March 2016. External Document

Retirement Reforms Summary Effective March 2016. External Document Retirement Reforms Summary Effective March 2016 External Document Table of Contents 1. Introduction 3 2. Pay-out on retirement 3 2.1 Exceptions 4 2.1.1 Individuals 55 or older on 1 March 2016 4 2.1.2 Contributions

More information

STATE OF OKLAHOMA. 2nd Session of the 49th Legislature (2004) AS INTRODUCED

STATE OF OKLAHOMA. 2nd Session of the 49th Legislature (2004) AS INTRODUCED STATE OF OKLAHOMA 2nd Session of the 49th Legislature (2004) HOUSE BILL HB2563: Greenwood AS INTRODUCED An Act relating to revenue and taxation; creating the Health Savings Account Act; defining terms;

More information

(1 March 2015 to date) LONG-TERM INSURANCE ACT 52 OF 1998

(1 March 2015 to date) LONG-TERM INSURANCE ACT 52 OF 1998 (1 March 2015 to date) LONG-TERM INSURANCE ACT 52 OF 1998 (Gazette No. 19276, Notice No. 1190, dated 23 September 1998. Commencement date: 1 January 1999 [Proc. No. R127, Gazette No. 19596, dated 18 December

More information

Superannuation. A Financial Planning Technical Guide

Superannuation. A Financial Planning Technical Guide Superannuation A Financial Planning Technical Guide 2 Superannuation Contents Superannuation overview 4 Superannuation contributions 4 Superannuation taxation 7 Preservation 9 Beneficiary nomination 9

More information

that the assets are often used outside of the office, some private or domestic use is inevitable.

that the assets are often used outside of the office, some private or domestic use is inevitable. DRAFT DRAFT INTERPRETATION NOTE DATE: ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act) SECTION : PARAGRAPHS 2(b), 2(e), 2(h), 6, 10 AND 13(1) OF THE SEVENTH SCHEDULE SUBJECT : TAXABLE BENEFIT USE OF EMPLOYER-PROVIDED

More information

INTERPRETATION NOTE: NO. 77. DATE: 4 March 2014

INTERPRETATION NOTE: NO. 77. DATE: 4 March 2014 INTERPRETATION NOTE: NO. 77 DATE: 4 March 2014 ACT : INCOME TAX ACT NO. 58 OF 1962 SECTION : PARAGRAPHS 2(b), 2(e), 2(h), 6, 10 AND 13(1) OF THE SEVENTH SCHEDULE SUBJECT : TAXABLE BENEFIT USE OF EMPLOYER-PROVIDED

More information

TAX ADMINISTRATION LAWS AMENDMENT BILL

TAX ADMINISTRATION LAWS AMENDMENT BILL REPUBLIC OF SOUTH AFRICA TAX ADMINISTRATION LAWS AMENDMENT BILL (As introduced in the National Assembly (proposed section 7); explanatory summary of Bill published in Government Gazette No. 393 of 22 October

More information

Sage VIP 2014/15. Payroll Pocket Guide. A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa

Sage VIP 2014/15. Payroll Pocket Guide. A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa Sage VIP Payroll Pocket Guide 2014/15 A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa Quick Reference Subsistence Allowance Travel inside RSA

More information

STELLENBOSCH UNIVERSITY RETIREMENT FUND GUIDE FOR NEW MEMBERS

STELLENBOSCH UNIVERSITY RETIREMENT FUND GUIDE FOR NEW MEMBERS 1 of 9 STELLENBOSCH UNIVERSITY RETIREMENT FUND GUIDE FOR NEW MEMBERS SECTION 1 The intention of the University of Stellenbosch Retirement Fund (USRF) is to provide the best available benefits for contributions

More information

SELECT SIPP. Taking pension benefits guide

SELECT SIPP. Taking pension benefits guide SELECT SIPP Taking pension benefits guide Please read this guide in conjunction with the Alliance Trust Savings Handbook and the appropriate Key Features documents. Alliance Trust Savings does not give

More information

Sage VIP Payroll Pocket Guide 2015/16. A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa

Sage VIP Payroll Pocket Guide 2015/16. A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa Sage VIP Payroll Pocket Guide 2015/16 A complete reference guide covering legislative matters that affect the payroll practitioner in South Africa Quick Reference Subsistence Allowance Travel inside RSA

More information

APPENDIX I: INCOME AND ASSETS

APPENDIX I: INCOME AND ASSETS APPENDIX I: INCOME AND ASSETS Annual Income Annual gross income means all amounts, monetary or not, which go to, or on behalf of, the family head or spouse or to any other family member received from a

More information

Tax Guide 2014/15 South Africa

Tax Guide 2014/15 South Africa Tax Guide 2014/15 South Africa Individuals and Trusts Tax Rates 1 March 2014 to 28 February 2015 Individual Taxpayers and Special Trusts Taxable Income R0 174 550 Rate of Tax 18% of taxable income R174

More information

IBN Glossary - Benefit Definitions. Accidental Death and Dismemberment

IBN Glossary - Benefit Definitions. Accidental Death and Dismemberment IBN Glossary - Benefit Definitions Accidental Death and Dismemberment Actuary - (Pension) Added Years Additional Voluntary Contributions (AVC) AVCs in house AVCs - FSAVCs AD&D provides coverage for death

More information

Understanding business insurance

Understanding business insurance Version 4.2 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to. Important information This document has been published

More information

Understanding Business Insurance

Understanding Business Insurance Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to business insurance.

More information

Certificate. Employee Life Coverage. Certificate of Participation A. Effective January 1, 2008

Certificate. Employee Life Coverage. Certificate of Participation A. Effective January 1, 2008 Certificate of Participation A Minnesota Life Insurance Company - A Securian Company Group A Insurance Employer/Employee Administration 400 Robert Street North St. Paul, Minnesota 55101-2098 abcd INSURING

More information

Fact Sheet Tax on Super 2009/10

Fact Sheet Tax on Super 2009/10 It pays to belong TM Key Focus A tax of 15% applies to concessional (i.e. before tax) contributions. All employer and salary sacrifice contributions will be taxed at the top marginal rate if your super

More information

Self Directed Personal Retirement Bond. Personal Retirement Benefits Brochure

Self Directed Personal Retirement Bond. Personal Retirement Benefits Brochure Self Directed Personal Retirement Bond Personal Retirement Benefits Brochure Contents Section 1: What is a Personal Retirement Bond? 2 Section 2: Definitions 3 Section 3: Contributions 4 Section 4: Charges

More information

REVISED PROPOSED AMENDMENTS CONCERNING MORTGAGE INVESTMENT CORPORATIONS AND INVESTMENT CORPORATIONS MORTGAGE INVESTMENT CORPORATIONS

REVISED PROPOSED AMENDMENTS CONCERNING MORTGAGE INVESTMENT CORPORATIONS AND INVESTMENT CORPORATIONS MORTGAGE INVESTMENT CORPORATIONS REVISED PROPOSED AMENDMENTS CONCERNING MORTGAGE INVESTMENT CORPORATIONS AND INVESTMENT CORPORATIONS MORTGAGE INVESTMENT CORPORATIONS 1. (1) Paragraph 130.1(6)(d) of the Income Tax Act is replaced by the

More information

Payroll Tax Pocket Guide 2016/17

Payroll Tax Pocket Guide 2016/17 Payroll Tax Pocket Guide 2016/17 A complete reference guide covering legislative matters that affect the HR & payroll practitioner in South Africa. Quick Reference Subsistence Allowance Travel inside RSA

More information

INTERNAL REVENUE SERVICE NATIONAL OFFICE TECHNICAL ADVICE MEMORANDUM

INTERNAL REVENUE SERVICE NATIONAL OFFICE TECHNICAL ADVICE MEMORANDUM INTERNAL REVENUE SERVICE NATIONAL OFFICE TECHNICAL ADVICE MEMORANDUM Number: 200502040 Release Date: 01/14/2005 Index (UIL) No.: 61.53-00, 79.03-00, 83.05-00 CASE-MIS No.: TAM-144621-03 -------------------------------------

More information

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13 Part 13 Close companies CHAPTER 1 Interpretation and general 430 Meaning of close company 431 Certain companies with quoted shares not to be close companies 432 Meaning of associated company and control

More information

CARMEN VENTER WORKSHOPS FOR CFP EXAMINATIONS 2014

CARMEN VENTER WORKSHOPS FOR CFP EXAMINATIONS 2014 CARMEN VENTER WORKSHOPS FOR CFP EXAMINATIONS 2014 BUSINESS ASSURANCE Page 1 BUSINESS ASSURANCE MAKES REFERENCE TO THE BUSINESS ARRANGEMENTS THAT ARE NORMALLY FUNDED WITH LIFE INSURANCE POLICIES. THESE

More information

[05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions

[05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions [05.05.19] Payments on Termination of an Office or Employment or a Change in its Functions Contents Sections 123 and 201, and Schedule 3 of the Taxes Consolidation Act, 1997 Updated April 2014 1. Introduction...3

More information

Summary of Social Security and Private Employee Benefits MEXICO

Summary of Social Security and Private Employee Benefits MEXICO Private Employee Benefits MEXICO 2013 Your Local Link to IGP in MEXICO: Seguros Monterrey New York Life, S.A. Seguros Monterrey, S.A., founded in 1940, is one of the leading life and health insurance companies

More information

Summary of Social Security and Private Employee Benefits URUGUAY

Summary of Social Security and Private Employee Benefits URUGUAY Private Employee Benefits URUGUAY 2012 Your Local Link to IGP in URUGUAY: Network Partner Mapfre Uruguay Compañía de Seguros S.A. was established in 1995 and is the fourth largest insurance company in

More information

INTERPRETATION NOTE: NO. 35 (ISSUE 3) DATE: 31 March 2010

INTERPRETATION NOTE: NO. 35 (ISSUE 3) DATE: 31 March 2010 INTERPRETATION NOTE: NO. 35 (ISSUE 3) DATE: 31 March 2010 ACT : INCOME TAX ACT, NO. 58 OF 1962 (the Act) SECTION : PARAGRAPHS 1, 2(1A) AND 2(5) OF THE FOURTH SCHEDULE AND SECTION 23(k) SUBJECT : EMPLOYEES

More information

- on termination due to redundancy

- on termination due to redundancy The Increased Tax on Lump Sum Termination Payments By Ray Stevens (USA) INTRODUCTION In May, 1983, the Government announced increases in the taxation payable on lump sum superannuation benefits and on

More information

protecting you and your family

protecting you and your family protecting you and your family Insurance guide Effective 1 July 2015 Issued by CSF Pty Limited ABN 30 006 169 286, AFSL 246664, Trustee of the MyLifeMyMoney Superannuation Fund ABN 50 237 896 957 mylifemyinsurance.com.au

More information

For more information, please visit our website or call us today.

For more information, please visit our website or call us today. The National Insurance Employment Injury Benefits are payable to an insured person who is unable to work because of personal injury caused by an accident, which arises out of and in the course of employment,

More information

Dividends in Respect of Employment

Dividends in Respect of Employment flash International Executive Alert A Publication for Global Mobility and Tax Professionals by KPMG s International Executive Services Practice South Africa Special Report: Tax Law Amendment Bills Published

More information

CSIR Pension Fund An overview 2. Investment Option Information 3. Insured Death Benefit Cover 4. CSIR Group Life 5

CSIR Pension Fund An overview 2. Investment Option Information 3. Insured Death Benefit Cover 4. CSIR Group Life 5 Contents Page CSIR Pension Fund An overview 2 Investment Option Information 3 Insured Death Benefit Cover 4 CSIR Group Life 5 Death Benefit Dependants/Beneficiaries Nomination 6-7 Disability Income Scheme

More information

AustChoice Super general reference guide (ACH.02)

AustChoice Super general reference guide (ACH.02) AustChoice Super general reference guide (ACH.02) Issued: 28 May 2015 This guide contains important information not included in the AustChoice Super PDS. We recommend you read this entire guide. The information

More information

CERTIFICATE OF INSURANCE FOR THE GROUP POLICY ISSUED TO U.S. BANCORP

CERTIFICATE OF INSURANCE FOR THE GROUP POLICY ISSUED TO U.S. BANCORP CERTIFICATE OF INSURANCE FOR THE GROUP POLICY ISSUED TO U.S. BANCORP Minnesota Life Insurance Company 400 Robert Street North St. Paul, Minnesota 55101-2098 You are insured under the group policy identified

More information

South African Reward Association

South African Reward Association South African Reward Association Budget Update 2014/15 Tax Law Changes 01 March 2013 Jerry Botha jerry@taxconsulting.co.za 082 899 6118 Overview 1. Budget 2014/15 & new from SARS 2. Tax Amendments 2013

More information

INCOME TAX AND THE SRP

INCOME TAX AND THE SRP INCOME TAX AND THE SRP (For Participants joining the Plan on or after April 15, 1998 Net Plan) The information provided below is for information purposes only - it is not tax advice. U.S. tax law is subject

More information

TABLE OF CONTENTS: PART A: EXAMPLES

TABLE OF CONTENTS: PART A: EXAMPLES TABLE OF CONTENTS: PART A: EXAMPLES Compound interest calculations Example 1: Determine the future value of a single payment (lump sum)... 3 Example 2: Determine the annual rate of interest earned by an

More information

Employee: 9.75 % of gross monthly salary Employer: 12.25% of gross monthly salary depending on type of industry No salary ceiling.

Employee: 9.75 % of gross monthly salary Employer: 12.25% of gross monthly salary depending on type of industry No salary ceiling. Prepared by Mapfre Panama. I SUMMARY Social Security Eligibility Retirement Age Contributions Retirement Disability All private and public employees. 62M/57F Employee: 9.75 % of gross monthly salary Employer:

More information

2014 No. 2672 SOCIAL CARE, ENGLAND. The Care and Support (Charging and Assessment of Resources) Regulations 2014

2014 No. 2672 SOCIAL CARE, ENGLAND. The Care and Support (Charging and Assessment of Resources) Regulations 2014 S T A T U T O R Y I N S T R U M E N T S 2014 No. 2672 SOCIAL CARE, ENGLAND The Care and Support (Charging and Assessment of Resources) Regulations 2014 Made - - - - 22nd October 2014 Laid before Parliament

More information

Your policy conditions

Your policy conditions For customers Your policy conditions IP15 Personal Protection Welcome to Aegon Thank you for choosing our Personal Protection policy. We have been part of the Aegon group since 1994, linking Scottish Equitable

More information

SUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE

SUMMARY REVIEW COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN FOR THE SUMMARY REVIEW FOR THE COLORADO COUNTY OFFICIALS AND EMPLOYEES RETIREMENT ASSOCIATION 457 DEFERRED COMPENSATION PLAN TABLE OF CONTENTS INTRODUCTION... i HIGHLIGHTS... 2 PARTICIPATION... 2 Eligibility to

More information

Korea, South. Old Age, Disability, and Survivors. Korea, South. Exchange rate: US$1.00 equals 945.30 won. Qualifying Conditions. Regulatory Framework

Korea, South. Old Age, Disability, and Survivors. Korea, South. Exchange rate: US$1.00 equals 945.30 won. Qualifying Conditions. Regulatory Framework Korea, South Exchange rate: US$1.00 equals 945.30 won. Old Age, Disability, and Survivors First law: 1973 (national welfare pension). Current law: 1986 (national pension), with 1989, 1993, 1995, 1997,

More information

ROTH IRA DISCLOSURE STATEMENT

ROTH IRA DISCLOSURE STATEMENT ROTH IRA DISCLOSURE STATEMENT The Pension Fund of the Christian Church established and maintains the Defined Contribution Retirement Accounts of the Pension Fund of the Christian Church (Disciples of Christ)

More information

- Specific restrictive rules override general rules (S11(a)] * Legal costs incurred related to claim or dispute (Attorney fees, court fees)

- Specific restrictive rules override general rules (S11(a)] * Legal costs incurred related to claim or dispute (Attorney fees, court fees) Special Deductions Extra rules to address specific items: - To deduct items not covered by S11(a) - To limit items allowed by S11(a) - To clarify uncertainties General Limitation S23B VAT S23C - No double-deductions

More information

Industrial Injury Allowance Policy

Industrial Injury Allowance Policy Industrial Injury Allowance Policy 1. Aim The aim of this policy is to provide information to managers on the reporting of industrial injury related absence, and the mechanisms available to support employees

More information

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED

ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED ANNUITIES: WHAT ARE THEY AND HOW ARE THEY USED (FORC Journal: Vol. 18 Edition 1 - Spring 2007) 1 An annuity is a contract under which the owner of the contract pays money or transfers assets to the obligor

More information

Insurance and estate planning. A Financial Planning Technical Guide

Insurance and estate planning. A Financial Planning Technical Guide Insurance and estate planning A Financial Planning Technical Guide 2 Insurance and estate planning Introduction 4 General insurance 4 Private health insurance 4 Personal insurance 5 Business insurance

More information

RETURN OF INCOME FOR THE YEAR ENDED 30 JUNE 2013 AND CLAIM FOR ALLOWANCES FOR THE YEAR COMMENCING 1 JULY 2013. Important notes

RETURN OF INCOME FOR THE YEAR ENDED 30 JUNE 2013 AND CLAIM FOR ALLOWANCES FOR THE YEAR COMMENCING 1 JULY 2013. Important notes Ministry of Finance TAX RETURN 2013/2014 Income Tax Office Form IT1P RETURN OF INCOME FOR THE YEAR ENDED 30 JUNE 2013 AND CLAIM FOR ALLOWANCES FOR THE YEAR COMMENCING 1 JULY 2013 Important notes You are

More information

GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION

GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION GOLD CROSS SERVICES, INC. 401(K) RETIREMENT SAVINGS PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS INTRODUCTION TO YOUR PLAN What kind of Plan is this?... 1 What information does this Summary provide?...

More information

First and current law: 1965 (social security fund), with amendments.

First and current law: 1965 (social security fund), with amendments. Page 1 of 6 Social Security Programs Throughout the World: Africa, 2009 You are here: Social Security Online > Research, Statistics, & Policy Analysis > Program Descriptions > Social Security Programs

More information

REPUBLIC OF SOUTH AFRICA EXPLANATORY MEMORANDUM

REPUBLIC OF SOUTH AFRICA EXPLANATORY MEMORANDUM REPUBLIC OF SOUTH AFRICA EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2011 27 January 2012 [W.P. - 11] 1 TABLE OF CONTENTS EXPLANATION OF MAIN AMENDMENTS 1. INCOME TAX: RATES AND THRESHOLDS

More information

ACT : INCOME TAX ACT NO. 58 OF 1962 SECTION : SECTION 11(nA) SUBJECT : TAX DEDUCTION FOR AMOUNTS REFUNDED TO EMPLOYERS

ACT : INCOME TAX ACT NO. 58 OF 1962 SECTION : SECTION 11(nA) SUBJECT : TAX DEDUCTION FOR AMOUNTS REFUNDED TO EMPLOYERS DRAFT DRAFT INTERPRETATION NOTE DATE: ACT : INCOME TAX ACT NO. 58 OF 1962 SECTION : SECTION 11(nA) SUBJECT : TAX DEDUCTION FOR AMOUNTS REFUNDED TO EMPLOYERS Preamble In this Note unless the context indicates

More information

CHAPTER 8 TAX CONSIDERATIONS

CHAPTER 8 TAX CONSIDERATIONS CHAPTER 8 TAX CONSIDERATIONS Life insurance traditionally has enjoyed favorable tax treatment. The major advantages are (1) the death benefits of a life policy payable to a beneficiary are not subject

More information

Universal Credit: capital and income

Universal Credit: capital and income Universal Credit: capital and income September 2011 1 SUMMARY OF ILLUSTRATIVE REGULATIONS 1. This paper contains an initial, illustrative set of regulations on the treatment of capital and income in Universal

More information

Toronto District School Board GROUP LIFE INSURANCE FOR TEACHERS

Toronto District School Board GROUP LIFE INSURANCE FOR TEACHERS INTRODUCTION Toronto District School Board GROUP LIFE INSURANCE FOR TEACHERS This group life insurance plan, under policy G. 10450 with Canada Life, originated in 1971. It is managed by a joint Management

More information

Introduction... Distinctive Features of the Benefits Environment... Key Changes in Recent Years...

Introduction... Distinctive Features of the Benefits Environment... Key Changes in Recent Years... Table of Contents Introduction... Distinctive Features of the Benefits Environment... Key Changes in Recent Years... 2 3 4 Statutory/Mandatory Programs... 5... 5 Retirement Benefits... 6 Death Benefits...

More information

New York State Department of Taxation and Finance Taxpayer Services Division Technical Services Bureau

New York State Department of Taxation and Finance Taxpayer Services Division Technical Services Bureau New York State Department of Taxation and Finance Taxpayer Services Division Technical Services Bureau STATE OF NEW YORK COMMISSIONER OF TAXATION AND FINANCE ADVISORY OPINION PETITION NO. I970821A On August

More information

Rider. Long-Term Care Services sm (an accelerated death benefit rider) understanding the taxation of my benefits

Rider. Long-Term Care Services sm (an accelerated death benefit rider) understanding the taxation of my benefits Long-Term Care Services sm (an accelerated death benefit rider) Rider AXA Equitable Life Insurance Company MONY Life Insurance Company of America planning perspective understanding the taxation of my benefits

More information

THE ITC BUY OUT BOND BROCHURE. www.independent-trustee.com

THE ITC BUY OUT BOND BROCHURE. www.independent-trustee.com THE ITC BUY OUT BOND BROCHURE www.independent-trustee.com If you were the member of an occupational pension scheme, leaving or have left employment, or your pension scheme is being wound up, it is time

More information

An explanation of social assistance, pension schemes, insurance schemes and similar concepts

An explanation of social assistance, pension schemes, insurance schemes and similar concepts From: OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth Access the complete publication at: http://dx.doi.org/10.1787/9789264194830-en An explanation of social

More information

Introducing the NEW Online Insurance Calculators

Introducing the NEW Online Insurance Calculators Introducing the NEW Online Insurance Calculators www.bmoinsurance.com/advisor Making it easier to do business with us! INSURANCE S Accessing the Insurance Calculators From the Resource Center home page,

More information

NHS Pension Scheme: Lifetime Allowance Charge (LTAC)

NHS Pension Scheme: Lifetime Allowance Charge (LTAC) NHS Pension Scheme: Lifetime Allowance Charge (LTAC) Amounts exceeding the Lifetime Allowance (LTA) are subject to a Lifetime Allowance Charge (LTAC) at the time benefits are taken. Any pension taken is

More information

CANADA REVENUE AGENCY. INTERPRETATION BULLETIN - No: IT-85R2

CANADA REVENUE AGENCY. INTERPRETATION BULLETIN - No: IT-85R2 CANADA REVENUE AGENCY INTERPRETATION BULLETIN - No: IT-85R2 DATE: July 31, 1986 SUBJECT: INCOME TAX ACT Health and Welfare Trusts for Employees REFERENCE: Paragraph 6(1)(a) and section 104 (also subsections

More information

Tax deductible superannuation contributions

Tax deductible superannuation contributions Tax deductible superannuation contributions TB 35 TECHNICAL SERVICES ISSUED ON 29 OCTOBER 2014 ADVISER USE ONLY VERSION 1.1 Summary Employers and certain individuals can claim a tax deduction for contributions

More information

Memorandum. Office of Chief Counsel Internal Revenue Service. Number: 200604023 Release Date: 1/27/2006 CC:INTL:Br1:ERBarret PLR-147119-05

Memorandum. Office of Chief Counsel Internal Revenue Service. Number: 200604023 Release Date: 1/27/2006 CC:INTL:Br1:ERBarret PLR-147119-05 Office of Chief Counsel Internal Revenue Service Memorandum Number: 200604023 Release Date: 1/27/2006 CC:INTL:Br1:ERBarret PLR-147119-05 UILC: 9114.03-02 date: October 24, 2005 to: Rick Ward Small Business/Self-Employed

More information

- 1 - CONTENTS INCOME TAX RATES, REBATES AND THRESHOLDS 2. Travel expenses 19 Medical aid contributions and medical expenses 20 Home study expenses 22

- 1 - CONTENTS INCOME TAX RATES, REBATES AND THRESHOLDS 2. Travel expenses 19 Medical aid contributions and medical expenses 20 Home study expenses 22 TAX GUIDE 2015 2016 - 1 - CONTENTS INCOME TAX RATES, REBATES AND THRESHOLDS 2 WEAR AND TEAR AND CAPITAL ALLOWANCES 3 RESIDENTS South African interest 4 Foreign interest 4 South African dividends 4 Dividends

More information

Your Payout Annuity policy

Your Payout Annuity policy 64075528 Your Payout Annuity policy In this document, "you" and "your" means the owner of this policy, or the policyholder. "We", "our", "us" and the "Company" means Sun Life Assurance Company of Canada.

More information

www.civilservice-pensions.gov.uk

www.civilservice-pensions.gov.uk www.civilservice-pensions.gov.uk This booklet is published by Civil Service Pensions. Crown Copyright June 2008 Printed by St Ives Direct PPA-1 partnership pension account Contents partnership pension

More information

Code means the Internal Revenue Code of 1986, as amended.

Code means the Internal Revenue Code of 1986, as amended. The American Funds Roth IRA Trust Agreement Pending IRS approval. Section 1 Definitions As used in this trust agreement ( Agreement ) and the related Application, the following terms shall have the meaning

More information

Includes Tips & Tricks that could save you substantial $$$ and help make sure your claims get paid.

Includes Tips & Tricks that could save you substantial $$$ and help make sure your claims get paid. Includes Tips & Tricks that could save you substantial $$$ and help make sure your claims get paid. WHAT IS INSURANCE? It s simply the transference of a risk from yourself to the Insurer. By paying the

More information

Funeral Plan. Product Disclosure Statement. Rewarding experience

Funeral Plan. Product Disclosure Statement. Rewarding experience Funeral Plan Product Disclosure Statement Rewarding experience This product and product disclosure statement are issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530 AFSL 229880 under the

More information

Draft Guidance - Revenue & Customs Brief 04/13

Draft Guidance - Revenue & Customs Brief 04/13 Draft Guidance - Revenue & Customs Brief 04/13 Payments made or benefits provided by fund managers, fund platforms (fund supermarkets), advisers or other intermediaries to investors Following Revenue &

More information

Colombia. Old Age, Disability, and Survivors. Regulatory Framework. Qualifying Conditions. Coverage. Source of Funds. Colombia

Colombia. Old Age, Disability, and Survivors. Regulatory Framework. Qualifying Conditions. Coverage. Source of Funds. Colombia Colombia Exchange rate: US$1.00 equals 2,338.14 pesos. Old Age, Disability, and Survivors First law: 1946, implemented in 1965. Current law: 1993 (social insurance), implemented in 1994, with 2003 amendments.

More information

Retirement savings vehicles Do you understand the difference? Edition Two November 2011. Author: Tania Theron

Retirement savings vehicles Do you understand the difference? Edition Two November 2011. Author: Tania Theron Author: Tania Theron Retirement savings vehicles Do you understand the difference? We often see articles urging us to save for retirement in order to live a comfortable life the day we retire. Do investors

More information

Group Personal Accident + : Underwritten by Compass Insurance

Group Personal Accident + : Underwritten by Compass Insurance Group Life : Underwritten by Guardrisk Life Ltd Life Cover Life cover ensures that a member s family is financially able to maintain their standard of living after an unexpected death. Dread Disease Dread

More information

Benefits Payable upon Death

Benefits Payable upon Death Chapter 13 Benefits Payable upon Death Active Contributing Member Retired Member Other Considerations Beneficiary Designations Taxes Additional Information Application Procedures Benefits for Part-time

More information

INCOME TAX INSURANCE PERSONAL SICKNESS AND ACCIDENT INSURANCE TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE

INCOME TAX INSURANCE PERSONAL SICKNESS AND ACCIDENT INSURANCE TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE QUESTION WE VE BEEN ASKED QB 15/10 INCOME TAX INSURANCE PERSONAL SICKNESS AND ACCIDENT INSURANCE TAKEN OUT BY EMPLOYER FOR THE BENEFIT OF AN EMPLOYEE All legislative references are to the Income Tax Act

More information

Persons 65 or older or persons younger than 65 if that person, their spouse or their child is a person with a disability:

Persons 65 or older or persons younger than 65 if that person, their spouse or their child is a person with a disability: P6 ZAF TAX RATES AND ALLOWANCES JUNE AND DECEMBER 2015 The following tax rates and allowances are to be used in answering the questions. Year ending 28 February 2015/31 March 2015 Rebates Primary rebate

More information

Pensions - Tax Reliefs

Pensions - Tax Reliefs Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.

More information

Group Whole Life 1-877-VIP-CSEA. Valuable Insurance Programs. Administered by. Sponsored by

Group Whole Life 1-877-VIP-CSEA. Valuable Insurance Programs. Administered by. Sponsored by Group Whole Life 1-877-VIP-CSEA Valuable Insurance Programs Sponsored by Administered by Important Benefits for CSEA members The Civil Service Employees Association (CSEA) is committed to providing its

More information

Calendar No. 1231 94Tn CoaRsS SENATE REPORT 2d Session I No. 94-1296

Calendar No. 1231 94Tn CoaRsS SENATE REPORT 2d Session I No. 94-1296 Calendar No. 1231 94Tn CoaRsS SENATE REPORT 2d Session I No. 94-1296 RAILROAD RETIREMENT TAX ACT AMENDMENTS SEPTEMBER 22, 1970.-Ordered to be printed Mr. Loxco, from the Committee on Finance, submitted

More information

SELF-DIRECTED RETIREMENT SAVINGS PLAN APPLICATION

SELF-DIRECTED RETIREMENT SAVINGS PLAN APPLICATION SELF-DIRECTED RETIREMENT SAVINGS PLAN APPLICATION CALEDON TRUST COMPANY LIRA Locked in Retirement Account* LRSP Locked in Retirement Savings Plan* RSP - Retirement Savings Plan - Member Plan RSP - Retirement

More information

Relevant Life. Is your life cover appropriate? Corporate & Employer Solutions

Relevant Life. Is your life cover appropriate? Corporate & Employer Solutions Relevant Life Is your life cover appropriate? Corporate & Employer Solutions As a company director, taking out a Relevant Life policy could be a tax efficient way of providing valuable life cover for you

More information

INDIVIDUALS AND EMPLOYEES:

INDIVIDUALS AND EMPLOYEES: INDIVIDUALS AND EMPLOYEES: This draft legislation is released for public information. The amendments contained in this draft are merely proposals which are subject to change and final approval by the Minister

More information